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Anyone charging a Fuel Surcharge Yet?

Discussion in 'Lawn Mowing' started by RBatten, Apr 21, 2011.

  1. nobagger

    nobagger LawnSite Gold Member
    from Pa
    Posts: 3,065

    We sent out a letter with all our renewals and 3.85/ gallon was our trigger to raise rates a bit. We haven't mowed one lawn yet and today it went to 3.89/ gallon. I just heard on the national news....$6.00/gallon is a real possibility and more like a probability. I hate govt. and all the oil tycoon's. I hope they all rot in Hell!
     
  2. lawnboy dan

    lawnboy dan LawnSite Gold Member
    Posts: 3,712

    you guys who make the customer sighn a contract should have to just eat the gas price increase-
     
  3. Woody82986

    Woody82986 LawnSite Silver Member
    from DFW, TX
    Posts: 2,128

    I'm not charging any type of fuel surcharge this year. I didn't lower my prices when gas dipped down to $1.95 a few years ago, and I'm not going to add a fuel surcharge when gas hits $4.00 a gallon. Everyone got a small price increase at the beginning of the season that reflected what I figured to be a rise in gas prices over the course of the year. Now I will say that any new clients I agree to service with are getting a higher rate now than what I was charging at the beginning of the season. My rates on all services for new clients have gone up. I simply anticipate and prepare before the season starts so that my clients don't have to deal with a "fuel surcharge" adding weight to their monthly invoice. I'm not knocking anyone who institutes a fuel surcharge. I have in the past. But I just learned to anticipate the rise and plan for it in clients' every day pricing.
     
  4. sunny days 101

    sunny days 101 LawnSite Member
    Posts: 30

    I like your idea; but what if the gas goes up to $5 or $5.50? Maybe on your letter that is going out to customers it needs to say a higher percentage if $5-$6 for more than 2 wks during that month?

    It's kinda amazing that these customers dont care though---with low ballers out there working for rates that compete with the neighbor boy!! I had one guy that I obtained from a buy out and he was paying $25; and it was a small yard and we had the one across the street so two can be done at the same time....I told him since we had the one across the street we could keep the price the same...he says "well if you got the one across the street then why cant I pay $20 instead?" I told him "because I am not the neighbor kid mowing your lawn...I am rolling up with $40,000 in equipment". I dont care if that sounds rude--he was rude. In my mind I said I wouldnt be back to do it--but talked to his wife and she is nice--and apologized for her husband. (he was trying to get my spring clean up price chopped in half when she already agreed to it and work was done)
     
  5. yardguy28

    yardguy28 LawnSite Platinum Member
    Posts: 4,464

    well for now any price of gas $4 a gallon or higher will include a $2 a month fuel charge on it. it might have to be adjusted next season or purhaps prices will have to be raised next season depending on what the "new low" will be for gas prices.

    when i have 2 people what want my services that live next to each other or across the street from each other i always tell them i'll do for X amount each since you both live by each other but normally it would cost Y. the X amount is always cheaper than the Y amount.

    i had 2 corner lots across from each other that would normally go for $27 a piece and i told them that, but told them if they both hired me i'd do them for $25 a piece since it's a one stop deal.
     
  6. Darryl G

    Darryl G LawnSite Fanatic
    Posts: 8,033

    Instead of a fuel surcharge I just quit drinking instead and now I have my customers pay me in gasoline instead of beer. :walking:
     
  7. rain man

    rain man LawnSite Silver Member
    Posts: 2,794

    And the price of gas continues to climb. Where she stops nobody knows.
     

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